DOMS IPO (Industries Limited) Detail
DOMS IPO Details
IPO Open
13 December 2023
IPO Close
13 December 2023
Price Band
₹750 – ₹790
Issue Size
₹1,200 Cr
Market Cap
₹4,793 Cr
Min. Lot Size
18
Face value
₹10
GMP
₹335
IPO Timeline
IPO Open
13 December 2023
IPO Close
15 December 2023
Allotment
18 December 2023
Refund initiation
19 December 2023
Demat transfer
19 December 2023
Listing
20 December 2023
About DOMS Industries Limited
Founded in 2005 by the Late Shri Rasiklal Amritlal Raveshia and the Late Shri Mansukhlal Jamnadas Rajani in Valsad, Gujarat, India, DOMS Industries Limited. The Raveshia and Rajani families started the company as a small-scale manufacturing unit for educational stationery and launched their flagship brand, “DOMS,” in 2005.
Their initial product line consisted of basic school supplies like notebooks, pens, pencils, and erasers, focusing on affordability and quality to cater to the needs of students and educational institutions.
DOMS grew rapidly through product diversification, expanding its product line to include educational art materials, paper stationery, kits and combos, office supplies, hobby and craft, and fine art products.
They also established a strong distribution network across India, reaching over 50,000 retail outlets, and invested heavily in marketing and branding to build the DOMS brand as a symbol of quality and innovation.
Additionally, they acquired several smaller stationery companies to further strengthen their market position and invested in state-of-the-art manufacturing facilities to increase production capacity and improve efficiency.
DOMS Industries Limited, a prominent player in the Indian stationery and art materials industry, is set to launch its IPO on December 13, 2023. This book-built issue aims to raise a substantial Rs 1,200 crores, offering a compelling opportunity for investors to participate in the company’s remarkable growth story.
The IPO comprises both a fresh issue of 0.44 crore shares aggregating to Rs 350 crores, which will fuel DOMS’s strategic expansion plans and bolster their market position and an offer for sale of 1.08 crore shares aggregating to Rs 850 crores, allowing existing investors to share their success with the public.
Investors can participate in the offering from December 13th to December 15th, with the allotment expected to be finalized on December 18th. The tentative listing date is set for December 20th on both the BSE and NSE stock exchanges.
DOMS IPO price band has been set between Rs 750 and Rs 790 per share, with a minimum lot size of 18 shares. This translates to a minimum investment requirement of Rs 14,220 for retail investors. Investors categorized as sNII and bNII have higher minimum lot size requirements of 15 lots (270 shares) and 71 lots (1,278 shares), respectively, amounting to Rs 213,300 and Rs 1,009,620.
Jm Financial Limited, BNP Paribas, ICICI Securities Limited, and IIFL Securities Ltd act as the book running lead managers for the IPO, while Link Intime India Private Ltd serves as the registrar.
Industry Overview
The stationery and art materials industry in India is a growing sector, driven by factors such as increasing literacy rates, rising disposable incomes, and a growing emphasis on creativity among students. The market is expected to reach a value of ₹15,000 crore by 2027, growing at a CAGR of 7%.
The industry is characterized by the presence of a large number of unorganized players, with the organized sector accounting for around 30% of the market. However, the organized sector is expected to grow at a faster pace than the unorganized sector, driven by factors such as brand awareness, quality consciousness, and the expansion of retail chains.
Peers and Competitive Landscape:
DOMS Industries Limited has a prominent position for itself, capturing a respectable 10% market share. However, the company faces competition from several established players, such as:
- Hindustan Pencils (Natraj)
- A dominant player in the writing instruments segment, boasting a 12% market share. Their brand enjoys strong recognition, especially for their high-quality pencils and pens.
- Prominent Products:
- Writing Instruments: Ballpoint pens (Click series, Retractable series), gel pens (Glide series), pencils (Graphite series, Charcoal series), fountain pens (Maestro series)
- Kokuyo Camlin
- Holding an 8% market share, Kokuyo Camlin enjoys a well-established reputation in the industry, particularly within the school segment. Their diverse product portfolio caters to a range of educational needs.
- Prominent Products:
- Stationery: Notebooks (Camlin Kokuyo Smart Class, Kokuyo Campus), writing pads, paper rolls, files, folders, envelopes
- Art Materials: Crayons (Camlin Oil Pastels, Camlin Crayons), watercolors (Camlin Water Colours), acrylic paints (Camlin Acrylic Colours), brushes, palettes, canvases
- Other Products: Drawing boards, sketch pads, modeling clay, art kits
- Maped
- This global leader commands a 5% market share, primarily focusing on the premium segment. They are renowned for their superior quality and innovative products.
- Prominent Products:
- Writing Instruments: Mechanical pencils (Helix, Graph’Peps), pens (Visio, Stylo), markers (Color’Peps, Twin’Peps), highlighters (Fluo’Peps)
- Art Materials: Drawing pencils (Blackwing, Studio Design), color pencils (Blackwing Pearl, Prismacolor), erasers, sharpeners, scissors
- Other Products: School bags, geometry sets, rulers, staplers, paper cutters
DOMS IPO Reservation
| Investor Category | Shares |
|---|---|
| QIB | Not less than 75% of the Net Issue |
| Retail | Not more than 10% of the Net Issue |
| NII (HNI) | Not more than 15% of the Net Issue |
DOMS IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 18 | ₹14,220 |
| Retail (Max) | 14 | 252 | ₹199,080 |
| S-HNI (Min) | 15 | 270 | ₹213,300 |
| S-HNI (Max) | 70 | 1,260 | ₹995,400 |
| B-HNI (Min) | 71 | 1,278 | ₹1,009,620 |
Financials of DOMS Industries Limited
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 639.78 | 497.46 | 457.52 |
| Revenue | 1,216.52 | 686.23 | 408.79 |
| Profit After Tax | 102.87 | 17.14 | -6.03 |
| Net Worth | 337.43 | 247.25 | 233.61 |
| Reserves and Surplus | 337.06 | 246.87 | 233.24 |
| Total Borrowing | 100.07 | 84.90 | 97.27 |
- Assets: A significant 22.73% increase, demonstrating the company’s expansion and operational growth.
- Revenue: A robust 62.22% jump, indicative of strong sales performance and market penetration.
- Profit After Tax: A remarkable 114.15% surge, highlighting the company’s profitability and effective management.
- Net Worth: A healthy 37.20% growth, showcasing the company’s financial strength and solid balance sheet.
- Reserves and Surplus: A steady 32.01% increase, indicating the company’s ability to retain earnings and reinvest them for future growth.
- Total Borrowing: A positive 8.49% decrease, demonstrating the company’s focus on debt reduction and financial improvement.
Objective of DOMS IPO
1. Expansion and Capacity Enhancement:
- Establish a new manufacturing facility to increase production capacity and meet growing demand.
- Optimize production processes for greater efficiency and cost reduction.
2. Brand Building and Market Dominance:
- Increase brand awareness and visibility through targeted marketing and strategic partnerships.
- Expand distribution channels to reach a wider customer base and solidify market position.
3. Financial Strengthening and Debt Reduction:
- Reduce existing debt to improve financial health and attract new investors.
- Ensure long-term financial stability for sustainable growth.
4. Employee Motivation and Shareholder Value Creation:
- Offer employee ownership opportunities to foster commitment and motivation.
- Create long-term shareholder value through capital appreciation and potential dividends.
- Promote transparency and adhere to stringent corporate governance practices.
Share Holding Pattern
Pre IPO
Post IPO
FAQ about Company
The DOMS IPO issue size is Rs. 1,200 crores, with a price band of Rs. 750 – Rs. 790 per share.
The minimum lot size for retail investors is 18 shares, amounting to Rs. 14,220.
The IPO subscription period is from December 13th to December 15th, 2023. Allotment will be finalized on December 18th, and listing is expected on December 20th, 2023.
The objectives include expansion and capacity enhancement, brand building and market dominance, financial strengthening and debt reduction, employee motivation and shareholder value creation.
Jm Financial Limited, BNP Paribas, ICICI Securities Limited, and IIFL Securities Ltd are the book-running lead managers. Link Intime India Private Ltd is the registrar.
DOMS holds a respectable 10% market share in the Indian stationery and art materials industry.
Hindustan Pencils (Natraj), Kokuyo Camlin, and Maped are some of the major competitors of DOMS in the Indian stationery and art materials market.
You can apply for the DOMS IPO through your registered broker or online through your demat account.
Some risks associated with investing in the DOMS IPO include market fluctuations, economic downturns, and competition from other players in the industry.
The expected returns from the DOMS IPO will depend on the company’s future performance and market conditions.
The price band for the DOMS IPO is Rs. 750 – Rs. 790 per share.
